Elements of Consumer Behavior and Defining the Market Hierarchy BA396 Supplement Consumer Behavior EKB Model Need Recognition Information Search Information Evaluation Purchase Decision Post purchase Attitude Formation Consumer Behavior EKB Model Need Recognition Information Search Information Evaluation Purchase Decision Post purchase Attitude Formation Needs Functional product related Psychological stimulation social status power self reward Information Amount of information Sources internal external Reduce search Consumer Behavior Buying Process and Decision Making Need Recognition Information Search Information Evaluation Trial Adoption Purchase Decision Post purchase Attitude Formation Consumer Behavior Buying Process and Decision Making Need Recognition Habitual Decision Making Limited Problem Solving Information Search Information Evaluation Trial Adoption Purchase Decision Post purchase Attitude Formation Extended Problem Solving Consumer Behavior Who are your competitors and how do customers end up selecting your product Hierarchy of Markets Competition at different levels Try to understand consumer s decision process Within a household competition regarding the importance of different generic markets this will increase when resources are limited transportation will compete with food or housing Consumer Behavior Hierarchy of Markets Desire all products and services that compete for the consumer s dollars Generic Level demand for broadly defined need Specific Product Level car bicycle single family dwelling apt Brand Honda Chevrolet Schwinn Trek BikEE Hierarchy of Markets Example Diet Food 1 prepared Entr e frozen unprepared Supplement fresh frozen fresh Stouffers Store Deli restaurant Weight Watchers Hierarchy of Markets Example 2 Food prepared Entr e Fast American unprepared Supplement E S Sit down Asian Mexican American Asian Census Information http www census gov dmd www products html on intro to Census 2000 data products United States PDF Click on the Public Use Presentation Library and browse through the different presentations Click About way down the list there is presentation on the geographic concepts discussed in class Look for Title Census 2000 Geographic Concepts and Products September 2002 Number of slides 36 Description This presentation gives an overview of Census 2000 geographic concepts and products and the various geographic units for which Census 2000 data are available Census Information http www census gov dmd www products html Click on the Public Use Presentation Library and browse through the different presentations About the sixth presentation on the list there is presentation that covers the short form and long form information Look for Title Census 2000 and Its Data Products September 2002 Number of slides 41 Description An overview of the Census 2000 questions the data sets and the products released and the released media Segmentation Requirements Customers have different response elasticities Salesx1 Advx 5 Salesx2 Advx 2 Response x SalesPrx 2 x Distrx 3 x SalesPrx 4 x Distrx 2 differences can be identified and matched with customer descriptions Knowledge of market segments must be translatable to retail mix combinations Sufficient demand in at least one segment Characteristics stable over time Bases of Segmentation Geographic Nations regions states Demographic Age gender family size income Psychographic Social class lifestyle personality AIO inventories Behavioral Usage rate occasion for use benefits loyalty